Better Know How Much Your Roommate Makes

On behalf of McAdams Law on Monday, July 25, 2011.

With recent changes in the law, if you live in a stabilized apartment and the rent is over $2,500 a month, the unit can be deregulated and subject to market rates under certain conditions. If the total income of the occupants exceeds $200,000 for two years in a row, you can lose stabilized status. So that means if you take in a roommate, you need to know specifically how much income he or she brings in each year, because it will count towards the total. If your earnings and the roommate's together exceed the $200,000 threshold over a two-year period, you will lose your rent-stabilization protection. For example, if the roommate has a part-time job when first moving in and earns enough to cover expenses, and then later get a full-time position paying far more, it may jeopardize your regulated lease. Think carefully about who you share your place with.

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